VANCOUVER, May 25 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today
announced its quarterly results for the three-month period ended March 31,
2006.
Revenue increased by 55% to $2.4 million for the three-month period as
compared to the corresponding period in 2005. The loss for the three months
was $411,000 or $0.03 per share (basic) compared with a loss of $574,000 for
the quarter ended March 31, 2005.
The Company reported an EBITDA loss of $14,000 compared with an EBITDA
loss of $489,000 in the quarter ended December 31, 2005. EBITDA is a non-GAAP
measurement.
John Jacobson, President & CEO said "The results of the first quarter
demonstrate how much the company has improved relative to last year. The
EBITDA loss on operations, reduced significantly to virtually break-even, is
evidence of the progress we have made. In addition, we have signed a number of
new clients, are actively developing new service offerings and have begun
exploring new strategic opportunities within our existing customer base."
Achievements in Q1 2006:
- Record revenues of $800,000 average per month over the quarter and
break-even EBITDA
- Announced new customer accounts expected to produce new recurring
revenue by the end Q2 2006
- Maintained revenue and margin despite a continuing decline in the
US dollar exchange rate
- Reduced outstanding payables and accrued liabilities carried
forward from 2005
Non-GAAP measures
Commencing with Q1-2006, the Company will begin reporting EBITDA as it is
a key measure used by management to evaluate the Company's performance.
Management believes that EBITDA is useful as it provides an indication of the
results generated by the Company's business activities prior to taking into
consideration how those activities are financed and taxed and also prior to
taking into consideration asset depreciation and other non-cash expenses.
EBITDA is not a recognized measure under Canadian GAAP, and accordingly,
investors are cautioned that EBITDA should not be construed as an alternative
to net earnings or loss determined in accordance with GAAP as an indicator of
the financial performance of the Company or as a measure of the Company's
liquidity and cash flows. EBITDA may not be comparable to similar measures
presented by other issuers. The schedule below details how IP Applications
reconciles its net loss per GAAP to EBITDA for the most recent four quarters:
<<
March 31 December 31 September 30 June 30
(000's) 2006 2005 2005 2005
-------------------------------------------------------------------------
Operating Loss $(411) $(1,580) $(836) $(461)
Amortization 312 305 262 189
Stock-Based Compensation 79 269 63 52
Write-down of capital equipment - 307 - -
Loss on lease commitment - 210 - -
Other 6 - 29 130
-------------------------------------------------------------------------
EBITDA $(14) $(489) $(482) $(90)
-------------------------------------------------------------------------
Additional details on the quarterly results, including the unaudited
Consolidated Financial Statements and Management Discussion and Analysis, are
available at www.sedar.com under IP Applications Corp.
About IP Applications
IP Applications Corp. is uniquely positioned to serve companies that are
bringing online products, services, content, and internet access to market.
IP Applications provides a flexible combination of technology, systems and
expertise for customers who have identified channels and products but who lack
the delivery and support capabilities. IP Applications' integrated Operational
Support System, Help Desk and Network Monitoring Systems dramatically reduce
the cost, complexity and time to market for online products and services.
Forward-Looking Statements
This press release may contain forward-looking statements. Actual events
or results may differ materially from those described in the forward-looking
statements due to a number of risks and uncertainties. Forward-looking
statements are based on management's estimates, beliefs, and opinions. The
company assumes no obligation to update forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
>>
